Achieving targeted economic growth rate is challenging: Finance Minister

KATHMANDU, May 28: Finance Minister Bishnu Prasad Poudel has said it would be difficult to achieve the economic growth target determined for the current fiscal year due to the COVID-19 pandemic.

The Finance Minister said this while launching the Economic Survey at the Ministry of Finance this afternoon. He shared on the occasion that it was a challenge to achieve economic growth even in the current fiscal year.

The government had set the target of achieving 7 per cent economic growth rate while launching the budget for the current fiscal year. It had later reduced that figure and estimated it to be 4.01 per cent in view of the coronavirus pandemic.

According to the Finance Minister, a situation has arisen in which the revised projected target of 4.01 per cent also could not be achieved as prohibitory orders have been issued in many places of the country to contain the spread of the second wave of COVID-19.

He, however, added that most of the macroeconomic indicators were positive even in the adverse situation of the pandemic.

Finance Minister Poudel said the domestic investment has expanded, the scope of financial access, capital market and insurance has broadened, the overall balance of payment situation was in reserve and the remittance inflow and foreign exchange reserve have increased.